RM1 bln in infra at stake: Minister warns against misuse of paddy facilities for oil palm

Dr Rundi operates the paddy harvesting machine at Skim Paya Payang Tubih on Feb 16, 2026. Photo credit: UKAS

By DayakDaily Team

KUCHING, Feb 16: Nearly RM1 billion has been poured into Sarawak’s agricultural infrastructure and it must not be diverted away from paddy production.

The Minister for Food Industry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom said facilities built to boost rice output should not later be used for other crops such as oil palm.

“If the infrastructure is meant for paddy, it must remain for paddy. We are safeguarding our staple food supply,” he said at the launch of a padi harvesting machine at Skim Paya Payang Tubih here today, as reported by Sarawak Public Communication Unit (UKAS).

Rundi said the agri-food sector contributes about 10 per cent, or RM15 billion, to Sarawak’s GDP but its share is declining.

He cautioned that overdependence on imports could expose the State to risks from geopolitical tensions and climate change.

Despite Sarawak’s vast land area, he said not all land is suitable for paddy, especially peat soil, which requires years of treatment before it can be cultivated.

To maximise impact, he proposed clustering farmers together instead of operating in isolation, enabling better coordination of machinery, inputs and infrastructure.

“We cannot move in silos,” he stressed, pointing to the 93-hectare Paya Payang Tubih scheme as a model for phased, coordinated development.

Rundi also called for greater youth participation through mechanisation, smart farming and Internet of Things (IoT) applications to modernise the sector.

He added that the government is studying land leasing or acquisition, with owners’ consent, to facilitate large-scale paddy development under fair agreements. — DayakDaily